East Timor, Australia still far apart after first round of sea border
talks

Dili

East Timor on Friday accused Australia of dragging its feet in
negotiations to settle their maritime border after a first round of talks
ended without any apparent agreement.

Billions of dollars in offshore oil and gas revenues are at stake in
the talks, which began Monday in the East Timor capital and wound up
Thursday.

Australia wants to keep the border which was agreed with Jakarta after
Indonesia invaded East Timor in 1975. This would give it the lion's share
of reserves.

East Timor, which became independent in 2002, says the border should
lie at the mid-point between the two countries.

Peter Galbraith, head of Dili's negotiating team, said Canberra has
proposed the next meeting be held in Australia in September even though
East Timor wants monthly meetings.

East Timor claims it is losing a million dollars a day due to what it
calls Australia's illegal exploitation of resources in a disputed area of
the Greater Sunrise field.

"What is unfair is that is Australia has so far refused to
negotiate in a manner that will bring a conclusion any time soon,"
Galbraith told a press conference.

"It has tried to block a court from considering it, and continued
to take resources found in the disputed area."

He urged Canberra either to reverse its refusal to accept international
arbitration or to stop the exploitation until a final agreement is
reached.

"I can promise you that there is only one reason you try to stay
out of a court, and that is because you think you will lose in
court," Galbraith said.

In March 2002 Australia withdrew from the International Tribunal for
the Law of the Sea before the dispute reached the arbiter. East Timor
Prime Minister Mari Alkatiri described this at the time as "a hostile
act".

East Timor was Asia's poorest nation upon independence.

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Agence France Presse

April 22, 2004 Thursday

Australia refuses arbitration to settle Timor boundary dispute

SYDNEY, April 22

Australian Foreign Minister Alexander Downer rejected appeals to settle
a maritime boundary dispute with East Timor in international courts
Thursday and lashed critics who accuse Canberra of bullying its
impoverished neighbour.

Downer said "outsiders" were not needed to settle the
boundary dispute, which will determine who controls billions of dollars in
oil and gas reserves in the Timor Sea.

"We can negotiate this thing with the East Timorese," Downer
told reporters. "We don't need outsiders' help to do that, we don't
need outside help to assist us to negotiate our maritime boundaries."

In March 2002, Australia withdrew from the International Tribunal for
the Law of the Sea before the dispute reached the arbiter in what East
Timor Prime Minister Mari Alkatiri described as "a hostile act".

Downer accused Greens senator Bob Brown, a staunch critic of
Australia's stance who has just returned from a trip to the East Timor
capital Dili, of disloyalty for suggesting Canberra submit to an
international court.

"He should be on Australia's side," Downer said. "I hope
all of our senators would back Australia; if he doesn't back Australia ...
(if he) wants to back foreigners, well I don't think Australians would
appreciate that."

Alkatiri has said Dili is unlikely to ratify an interim revenue-sharing
deal on the Timor Sea oil and gas reserves because gives East Timor only
18 percent of revenues while handing Canberra 82 percent.

East Timor regards the Timor Sea revenue as a lifeline that can end the
nation's dependence on international aid.

Australia wants to keep the maritime border it agreed with Jakarta
after Indonesia invaded East Timor in 1975, which would give it the lion's
share of the reserves.

Dili argues that Jakarta only agreed to that deal in exchange for
Canberra's recognition of its illegal annexation of East Timor and the
border should lie at the mid-point between the two countries, in line with
standard international practice.

Talks aimed at settling the border dispute are scheduled to wrap up in
Dili Friday but a resolution appears unlikely, with East Timor accusing
Australia of dragging its feet so it can make the most of the lucrative
interim revenue-sharing arrangement.